MP1 -24.74%: the cloud connectivity business struggled today after announcing weak 2Q connection numbers with the market concerned about the company’s balance sheet. Monthly Recurring Revenue (MRR) climbed 6% to $12.4m, and revenue was 10% higher than the 1st quarter while the company is profitable at the EBITDA line. However, they added just 762 new services in the period, ~50% below expectations, while ports grew by just 203 to 9,809. The cash balance also fell by $12m to $57.5m. As a result of the tight cash balance, Megaport has secured a $25m revolving credit facility to support the balance sheet, however, this is an expensive short-term solution that may squeeze them further if the company doesn’t meet EBITDA embedded hurdles.
MM has no interest in MP1
Add To Hit List
